Insurance companies and foreign institutional investors (FIIs) seem bullish on IFCI Limited, India?s first state-run development financial institution.
While, insurance companies have increased their stakes in the company to 13.97% as on September 30, 2007 from nil at the end of June 2007, FIIs have upped their stake to 21.20%, from 14% as on June 30, 2007.
On the other hand, the holding of foreign venture capital came down to zero till September-end, from 18.59% as on June 30. The changes assume significance, as around June IFCI announced its plans to sell 26% stake to a strategic investor.
IFCI?s share price has been on a rise ever since it announced plans for a strategic sale. The company?s share was at Rs 85.85 on November 5, up 4.12% from its previous day closing level.
IFCI, which was in red for quiet sometime, reported profit in the last few quarters. IFCI has already sent request for proposal (RPF) to all eight bidders and interested parties are likely respond by mid of December.
Initially, 10 companies had expressed interest for the 26% stake in the company, but two companies had subsequently withdrawn from race.
Meanwhile, IFCI has given 30 financial institutions and banks the option of converting less than 50% of zero coupon convertible debentures? into equities. Bank and financial institutions own zero coupons worth Rs 1,479-crore.
Company has already received responses from 5 to 10 companies for converting zero coupon optional debentures into equities and hopes response from remaining companies in a week?s time.